How Can College Students Avoid Credit Hassles?

LOS ANGELES, CA--(Marketwire - Sep 15, 2011) - As parents send their kids off to college, many of them will wonder if they'll be able to make it in the real world. Unfortunately, many do not.

"The average student accumulates over $23,000 in student loan debt and $4,000 in credit card debt during their college years," said Gabe Albarian, a former college student who avoided his own credit crisis during his college years by following the advice he offers in "Financial Swagger" (www.financialswagger.com), a guide to help escape the pitfalls of credit disaster. Albarian's tips for students and recent grads include:

• New Credit Cards - Credit card companies love to offer unsecured credit cards to students and grads. Don't take the bait. There are other ways to establish credit without opening yourself up to the temptation to use that credit to live above your means.
  
  
• Authorized Users - If your parents are financially responsible (not always the case sometimes) and pay their bills on time every month, I suggest that you be added as an authorized user on their credit card. Make sure to provide your personal information and social security number to the credit card company so that your credit history report will reflect transactions performed on this account. In about six months, after you've learned with the authorized user training wheels how to manage your credit reliably and maintained a responsible payment history, you will receive your own credit card offers.
  
  
• Secured Credit Card - Don't get a regular credit card, yet. Instead, apply for a secured credit card. With a secured credit card, you place a nominal amount of money in a savings account that cannot be withdrawn as it is used as recourse to pay back your debts in case you do not pay them yourself. In essence, your spending limit on your secured card is exactly the amount you place in the linked savings account -- hence, your debt is secured by the money in your account. Just like a normal credit card, your payment history will be reported to the credit bureaus, building your credit rating.

About Gabe Albarian

Gabe Albarian, a 28 year-old businessman has worked in real estate sales, finance, and investment for nearly 10 years and has done extensive consulting work in personal finance for both individuals and groups.